Question
You are acquiring an apartment building at the beginning of the current year for $10 million at a 6% cap rate and financed with
You are acquiring an apartment building at the beginning of the current year for $10 million at a 6% cap rate and financed with 70% interest only debt at 5% and 30% equity investment. The net op- erating income increases by 3% each year and the property will be sold at the end of three the going in cap rate. What is the internal rate of return after debt on the investment? years at
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Valuation The Art and Science of Corporate Investment Decisions
Authors: Sheridan Titman, John D. Martin
3rd edition
133479528, 978-0133479522
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